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Mar 31, 2024
EPAM Q1 2024 Earnings Report
EPAM's first quarter results reflected adaptability to a challenging demand environment.
Key Takeaways
EPAM Systems, Inc. reported first-quarter revenues of $1.165 billion, a 3.8% year-over-year decrease. GAAP diluted EPS was $1.97, while non-GAAP diluted EPS was $2.46.
Revenues decreased to $1.165 billion, a 3.8% year-over-year decrease.
GAAP income from operations was 9.5% of revenues, and non-GAAP income from operations was 14.9% of revenues.
GAAP diluted EPS was $1.97, an increase of $0.24 year-over-year, and non-GAAP diluted EPS was $2.46, a decrease of $0.01 year-over-year.
Cash provided by operating activities was $129.9 million.
EPAM
EPAM
Forward Guidance
EPAM expects revenues for the second quarter of 2024 to be in the range of $1.135 billion to $1.145 billion and GAAP diluted EPS to be in the range of $1.52 to $1.60 and non-GAAP diluted EPS to be in the range of $2.21 to $2.29.
Positive Outlook
- Revenues to be in the range of $1.135 billion to $1.145 billion for the second quarter.
- GAAP income from operations to be in the range of 9.0% to 10.0% of revenues for the second quarter.
- Non-GAAP income from operations to be in the range of 13.5% to 14.5% of revenues for the second quarter.
- GAAP diluted EPS to be in the range of $1.52 to $1.60 for the second quarter.
- Non-GAAP diluted EPS to be in the range of $2.21 to $2.29 for the second quarter.
Challenges Ahead
- Client demand is not improving to the degree originally expected.
- Full year revenues are now expected to be in the range of $4.575 billion to $4.675 billion, reflecting a year-over-year decline of 1.4% at the midpoint of the range.
- Full year GAAP diluted EPS is now expected to be in the range of $7.34 to $7.64.
- The expected range for full year non-GAAP diluted EPS has been narrowed to $10.00 to $10.30.
- Revenues on an organic constant currency basis excluding the impact of the exit from Russia will decline approximately 3.0% at the midpoint of the range for Q2.